SKEW/VIX Index compare, is a new indicator that I built here on TradingView (you can read details how it was constructed in the related link below). When combining SKEW with VIX , we can see significant market tops/bottoms and displacement/divergence. As you can see in the chart, S&P has been in a tight upward channel since October, 2011. SKEW/VIX and Oil also marked a significant low in October, 2011. SKEW/VIX remained in upward trend from the low, and set many more highs until June 30 2014. It was in June, where Oil started it's panic selling, and eventually breaking the support stronghold held since the October 2011 low. From June 30, 2014 SKEW/VIX peak until now, both oil index OVX and S&P index VIX have risen significantly. With SKEW/VIX trending down toward a lower sub 5 level, I would call our S&P run since June 30th, an artificial lift. Eventually we will see a major correction.
VIX has been quietly trending upward. On this chart notice the higher lows.
Oil OVX has also increased in the S&P and follows VIX closely.
Goldman Sachs analyst Jan Hatius said this a few hours ago " "Our forecast remains for a September hike, but the risks now appear slightly skewed toward a later liftoff,"
Morgan Stanley " With our expectation that core inflation falls further from goal,and the lingering threats to growth and inflation from the rapid appreciation of the US dollar, we look for the Fed to forego rate hikes this year."